Hyundai Motor posts first revenue fall in 3 years [Khaleej Times (United Arab Emirates)]
(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) South Korea's Hyundai Motor posted its first year-on-year fall in quarterly revenue in nearly three years, as the stronger local currency weighed and imported rivals gained ground in the Korean home market.
The South Korean won gained three per cent against the dollar and surged 27 per cent versus the Japanese yen in the fourth quarter from a year earlier, reducing the value of Hyundai Motor's overseas revenue in local currency terms and lifting Japanese rivals' price competitiveness in the United States and other key export markets.
In its lucrative home market of South Korea, Hyundai's sales slumped as imported rivals like Volkswagen and Mercedes Benz boosted sales after trade deals.
"Currency fluctuations — the won's strength coupled with the yen's weakness — weighed on our earnings," Hyundai said in a statement.
Hyundai posted a revenue of 21.94 trillion Korean won ($20.56 billion) in the October to December period, a three per cent fall from a year earlier. This marked its first year-on-year fall since at least 2011 when new accounting methods were adopted.
Its global shipments rose 0.4 per cent to 1.23 million vehicles in the fourth quarter.
Net profit jumped 15 per cent to 2.06 trillion won, but missed a consensus forecast of 2.23 trillion. Its profit a year ago was hurt by provisions to cover the cost of compensating customers for overstated fuel-economy claims on some cars sold in the United States and Canada.
Hyundai's domestic sales slumped 13 per cent in the fourth quarter from a year earlier.
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